SOUTH SUMATRA BASIN - onshore

BAS 55% and Operator

The Company's acquisition of the Tangai-Sukananti KSO in 2017 transformed Bass Oil into a profitable oil producer in a prolific oil and gas region.

Bass Oil's (55% share) 2P Reserves at 31 December 2023 are assessed to be 0.741 million barrels of oil. In accordance with ASX reporting requirements for fiscal environments that use production share contracts or similar, Bass reports Net Entitlement 2P Oil Reserves of 0.439 million barrels. Production is expected to continue until 2032.

In 2023 Bass secured a 10 year licence extension for the KSO which now expires in September 2035.  The licence was secured at improved fiscal terms in return for a modest additional work program.

The renewal was offered based on the JV committing to a firm two-year US$3.25 million (100% share) work program which includes a well in year 2.  The work program is expected to be funded from free cashflow generated from the licence. 

Reservoir models have been updated following the success of the Tangai 5 development well.  The next well likely to be drilled in 2024 is the Bunian 6 development well (see Figure 1). This well is to be drilled updip of the prolific Bunian 3 well and will produce the undeveloped oil reserves in the southwest of the Bunian structure. 

The updated model, along with continued strong field production performance, have increased confidence that an extension of the Bunian field to the West exists. The extension, known as Bunian West, will be the target of a well to be drilled following the drilling of Bunian 6.  The 3P reserves case encompasses the potential of Bunian West and are assessed to be Bass Oil (55% share) 1.723 million barrels of oil or Net Entitlement 3P Oil Reserves of 0.914 million barrels.

The KSO additionally provides a platform for future growth through low cost development opportunities and value-adding bolt-on acquisition.